Mapfre Re “very satisfied” as Recoletos Re cat bond positively received by investors

Mapfre Re, the global reinsurance company headquartered in Spain, has said it is “very satisfied” with securing its debut catastrophe bond, the Recoletos Re DAC (Series 2024-1) issuance, saying that the deal was positively received by the capital markets.

As we’ve been reporting, Mapfre Re ventured into the catastrophe bond market for the first time in late November this year, with an initial target to secure $100 million of retrocession from its debut cat bond deal.

Given the very strong execution being seen in the cat bond market at this time, with almost every deal increasing in size and pricing down, Mapfre Re has benefited from market conditions.

The company increased the target size of this Recoletos Re cat bond to $125 million, while at the same time the notes were priced below the initial guidance.

“We’re very satisfied with this new protection because it enables us to expand our business in the United States and diversify our sources of reinsurance, which strengthens our position in the global market,” Miguel Rosa, CEO of MAPFRE RE explained.

The company noted that the transaction provides it with retrocessional reinsurance protection against named storms and hurricanes in the United States, on an industry-loss trigger and annual aggregate basis.

The coverage runs for three years for the reinsurer, until the end of calendar year 2027.

Mapfre Re said, “The capital markets received this inaugural operation very positively,” noting that investor demand helped the issuance to upsize.

You can read all about this new Recoletos Re DAC (Series 2024-1) catastrophe bond and view details on almost every other cat bond ever issued in our extensive Artemis Deal Directory.